Last year, Washington State offered $9 billion in tax incentives to Boeing in order to bring the aerospace manufacturer’s 777X production line to the state, thereby creating high-paying jobs that would benefit...
- The Tax Policy Blog
- Which Taxes Fall Most Heavily on Different Income Groups?
Which Taxes Fall Most Heavily on Different Income Groups?
With the April 17th tax filing deadline approaching we've released a new "Fiscal Fact" reminding Americans that federal income taxes—while obviously important—are just one among many federal, state and local taxes paid each year.
What's often overlooked in discussions of the nation's tax burden is that the federal individual income tax only accounted for about 26 percent of the roughly $3 trillion of federal, state and local taxes paid in 2004. And for many lower- and middle-income households, non-income taxes such as sales taxes, property taxes and Social Security and Medicare payroll taxes impose a much heavier burden than the federal personal income tax.
Here's a chart from the piece that answers the following question: "Of every dollar of taxes paid by households, how many pennies go to each type of federal, state and local tax?" The diversity of tax burdens across income groups is pretty striking:
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